Objective:
This study has multiple goals:-
1. To find out if Tata Steel does enjoy a competitive advantage vis-à-vis other players in the Steel industry in India. 2. To ascertain the source of this competitive advantage.
3. Find out if this competitive advantage is sustainable.

Industry OverviewIndia today is one of the topmost producers of steel in the world. With the industry attributes like low cost manpower and abundance of iron ore and coal reserves India today is a highly competitive market. The reasons for expansion of the sector can be primarily attributed to the huge expansion of the oil and natural gas sectors on infrastructure projects coupled with growth in housing, and the increase in demand for consumer durables and automobiles. According to the World Steel Association, India is the fourth largest producer of crude steel. India has an annual capacity of 80 million tons. With the government laying a lot of emphases on the infrastructure space the sector is poised to grow. The 1991 economic reforms has propelled the industry and its growth, and the steel industry has been positively been affected by it. With the licence requirement being removed and the Automatic approval of foreign equity investment up to 100 per cent is now available. Price and distribution controls were removed 20 years ago in an effort to make the steel industry more efficient and competitive. Restrictions on external trade, both on imports and exports have been abolished. Meanwhile, import duty rates have been reduced considerably. Certain other policy measures such as the reduction on import duty of capital goods, the convertibility of the rupee on trade accounts, the ability to mobilise resources from overseas financial markets, and the simplification of the existing tax structure for a period of time have all benefited the Indian steel industry. There has been focus on setting up of more steel plants and thus 222 memoranda of understanding (MoU’s) in conjunction with state governments have been signed for a planned capacity expansion of around 275.7 MT by 2020. The construction industry is what amount to 61% of the consumption of steel. Govt expects steel consumption to rise to 120 Mn by 2020 .

Government steps to Promote the steel industry
* 100% FDI is allowed in the steel industry
* Public-Private- Partnership (PPP) mode are being encouraged * R&D in this sector is a prime focus
* Custom duty have been reduced
* National Steel Policy (NSP) to encourage the steel industry to reach global benchmarks Market SizeThe current market size at US$55.1 billion. And SAIL is a dominant market player of 20.1 % while tata has 10.2% of the market. Total demand of steel is today looks at 65.2 million tons during FY11 Investments:

* Rashtriya Ispat Nigam Ltd (Visakhapatnam Steel Plant) has announced US$970 million worth of new units through expansion of its plants. * The Steel Authority of India Ltd (SAIL) is to set up processing units in Uttar Pradesh (UP). * India's largest iron ore miner, National Mineral Development Corporation Limited (NMDC) and Russian steel maker Severstal signed the implementation protocol in Moscow for setting up a joint venture steel plant in Karnataka. * Notable overseas investments in the sector include:

...Analysis of Indian SteelIndustry
Submitted by: Purvi Tibrewalla Roll 146, Sec B.
Submitted to: Ms. Paramita Sarkar
1
DECLARATION
I hereby declare that the work presented in this Project entitled “Analysis of Indian SteelIndustry” submitted to Ms. Paramita Sarkar full-time faculty at Smt. J.D.Birla Institute (Department of Management), Kolkata is an authentic record of my original work. The total word count of this paper is 18113 words.
Purvi Tiberewalla
2
ACKNOWLEDGEMENT
“A student is always incomplete without the guidance of his teachers.”
The successful completion of a task is incomplete without mentioning the name of the person who extended his help and support in making it a success. Firstly, I would like to thank our college director, Dr. Suman K. Mukherjee, because if it hadn’t been his vision to allot us the task of preparing a paper, I wouldn’t have ever got so much knowledge about this subject. I am greatly indebted to Ms. Paramita Sarkar (Full-time faculty at Smt. J.D.Birla Institute), my Project Guide and Mentor for devoting her valuable time and efforts towards my project. I thank her for being a constant source of knowledge, inspiration and help during this period of making project. Finally, I would also like to thank our faculty in-charge of Learning and Research Centre (LRC).It was indeed very kind of them to provide me with the necessary books...

...Indian steelindustry plays a significant role in the country’s economic growth. The major contribution directs the attention that steel is having a stronghold in the traditional sectors, such as infrastructure & constructions, automobile, transportation, industrial applications etc. Moreover, steel variant stainless steel is finding innovative applications due to its corrosion resistive property. India is the fifth largest steel producer at the global front and struggling to become the second largest producer in the coming years.
The country has acquired a central position on the global steel map with its giant steel mills, acquisition of global scale capacities by players, continuous modernization & up gradation of old plants, improving energy efficiency, and backward integration into global raw material sources. Global steel giants from across the world have shown interest in the industry due to its phenomenal performance. For instance - the crude steel production in India registered a year-on-year growth of 6.4% in 2010 and reached 66.8 Million Metric Tons.
Our new research report “Indian SteelIndustry Outlook to 2012” says that the, Indian crude steel production will grow at a CAGR of around 10% during 2010-2013. Moreover, with the government proactive incentive plans to...

...India's SteelIndustry is more than a century old. Before the economic reforms of the early 1990s the Indian steelindustry was a predominantly regulated one with the public sector dominating the industry.
Tata Steel was the only major private sector company involved the production of steel in India. SAIL and Tata Steel have traditionally been the major steel producers of India. In 1992, the liberalization of the India economy led to the opening up of various industries including the steelindustry. This led to the increase in the number of producers, increased investments in the steelindustry and increased production capacity. Since 1990, more than Rs 19,000 crores (US$ 4470.58 million) has been invested in the steelindustry of India.
India's steelindustry went through a rough phase between 1997 and 2001 when the overall global steel was facing a downturn and recovered after 2002. The major factor that led to the revival of the steelindustry in India after 2002 was the rise in global demand for steel and the domestic economic growth in India.
India has now emerged as the eighth largest producer of steel in the world with a production...

...Stock Evaluation Project - SteelIndustryIndustryAnalysisSteel is a part of metals and mining industry which is highly cyclical in nature, and when the economy at large suffers, this industry suffers with it. The most recent five years have been a struggle for this particular industry along with uncertain economic indicators, and steel companies’ stocks have trended downwards. The metals and mining industry is comprised of companies that engage in exploration, mine development, and ore mining. The industry includes precious metals mining for metals such as gold, silver, platinum as well as mining and processing industrial metals such as steel, copper, &amp; aluminum. The industry is mature, cyclical, capital intensive and dominated by large companies. Some of the major names in the Steel Sector of this industry are Commercial Metals (CMC), Steel Dynamics (STLD), Reliance Steel (RS), AK Steel (AKS), ArcelorMittal (MT), U.S.Steel (X). The US steelindustry is currently worth more than $50 billion with annual growth rates around 1% to 2%. Process chains are long with high production volumes. Recently, large quantities of low-cost imports have impeded growth. However, the...